Benchmark maintains T-Mobile stock buy rating, $255 target

Published 28/01/2025, 15:50
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On Tuesday, Benchmark analysts maintained their Buy rating and $255.00 price target for T-Mobile US (NASDAQ:TMUS) shares. The firm’s confidence in T-Mobile is bolstered by the company’s continued leadership in 5G network technology and the positive indications from the broader mobile market, as evidenced by recent results from AT&T Wireless.

T-Mobile is viewed by Benchmark as the leading large cap pick within the U.S. Communication Services sector. The analysts believe that the health of the overall mobile market is promising, and T-Mobile is well-positioned to capitalize on its advancements in 5G technology. Despite potential concerns about a slowdown in U.S. mobile additions, Benchmark’s analysis suggests that T-Mobile can sustain growth by focusing on its strongholds in affluent and urban demographics, while also addressing its market share in smaller markets and corporate accounts. InvestingPro analysis reveals 8 additional key investment insights for T-Mobile, available exclusively to subscribers.

The analysts also noted that T-Mobile is poised to benefit from advancements in artificial intelligence (AI), which are expected to enhance consumer experiences and drive economic growth. The comments from Microsoft (NASDAQ:MSFT) CEO Satya Nadella regarding AI developments, particularly China’s DeepSeek, were cited as a positive influence for T-Mobile’s integration of AI technologies.

Benchmark’s assessment highlights T-Mobile’s strategic positioning to continue its growth trajectory, leveraging both market trends and technological innovation. The firm’s reiterated price target of $255.00 reflects their ongoing optimism about T-Mobile’s performance in the competitive mobile services landscape.

In other recent news, T-Mobile US has announced the appointment of Srinivasan Gopalan, formerly of Deutsche Telekom (OTC:DTEGY), as its new Chief Operating Officer. His responsibilities will include leading technology initiatives and overseeing operations for both consumer and business groups. In addition, T-Mobile has launched a new shareholder return program, authorizing up to $14 billion in buybacks and dividends through December 31, 2025. This program is part of the company’s capital allocation strategy, which projects up to $80 billion in investments and returns.

In analyst news, RBC Capital Markets downgraded T-Mobile from Outperform to Sector Perform, following a reassessment of the valuation model in light of higher interest rates. However, Citi maintained its Buy rating on T-Mobile, forecasting a service revenue growth of approximately 4.5% in the fourth quarter of 2024.

In other developments, T-Mobile added 315,000 new postpaid accounts and 865,000 postpaid phone net subscribers, surpassing expectations. These are among the recent developments in T-Mobile’s journey.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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